Dunn Appointed to Senate Power Probe

State Sen. Joe Dunn (D-Santa Ana) has been appointed chairman of a special committee to probe the increase in power prices in the state.

The eight-member Senate Select Committee to Investigate Price Manipulation in the Wholesale Energy Market has tentatively set the first of its hearings for the first week in April.

Dunn said the majority of state legislators want to examine the wholesale electricity market to see what part it has been playing in skyrocketing prices.

While electricity demand in California has increased by 4% over the last year, the wholesale cost of power has gone up 266%, according to Dunn. During the same time, the profits of wholesale electricity suppliers Duke, Dynegy, Mirant, Reliant and Williams have soared an average of 508%, the senator said.

Dunn said Friday that he expects the committee to hold seven to 10 hearings, finishing its work in early June. It will issue a report that would include legislative remedies.

The senator said the heads of the wholesale companies may be asked to testify, and the committee could issue subpoenas for witnesses and documents.

“The industry has already said publicly through some of its spokespeople they have nothing to hide,” Dunn said. “We’re going to take them at their word.”

The select committee becomes the latest government agency to investigate the power crisis. Others include the Public Utilities Commission and the state attorney general’s office.

Thursday, U.S. Energy Secretary Spencer Abraham told Congress that power blackouts are inevitable in the state this summer, although state officials were more optimistic.

Other members of the committee are Debra Bowen (D-Marina del Rey), Wes Chesbro (D-Arcata), Martha Escutia (D-Whittier), Maurice Johannessen (R-Redding), Sheila Kuehl (D-Santa Monica), Bill Morrow (R-Oceanside), Chuck Poochigian (R-Fresno) and Byron Sher (D-Stanford).